Small business optimism slips two percent in July

Published 3:56 pm Monday, August 3, 2015

THOMASVILLE — Small businesses in Cairo and Thomasville reflect the findings of a recent survey that showssmall businesses in Georgia were increasingly worried about economic conditions in July.

Thumbtack.com’s Small Business Sentiment Survey is a monthly survey of independent local service businesses in the U.S. As part of its survey, the company included 523 responses from Georgia.

Email newsletter signup

The key findings for the state showed that Georgia small business owners’ feelings about their current finances declined by 2 percent while expectations for the economy as a whole dropped by 4 percent.

Concerns over tightening access to credit were particularly pronounced as expectations for the availability of credit declined by 5 percent. Nevertheless, Georgia’s independent local service professionals remain more optimistic about future economic conditions than the rest of the South and the nation as a whole.

Small businesses in Georgia reported that their biggest concern was acquiring new customers. In regards to hiring, Georgia’s small business owners reported a 3 percent decline in plans to add employees to their ranks.

Jay Evans, owner of Babcock & More Home Furniture in Thomasville, Cairo and Camilla, said in an interview with the Times-Enterprise (TTE) that he hasn’t had to cut employees, but he hasn’t hired any, either.

“We have cut in other places,” he explained. “We have worked hard to keep everyone’s jobs.”

He expects the economy to deteriorate more and more heading into the November 2016 election.

“People don’t spend when there is uncertainty, but the people in south Georgia are resilient,” he said, adding, they are “hardened against what people in politics do.”

Evans said, “They battle on and battle on just trying to make a living.”

“Although the economy as seen through the eyes of America’s small businesses has improved over the last year, and some areas reported stronger economic sentiment, recent trends show that small businesses overall are not feeling optimistic about the future,” said Thumbtack’s chief economist, Jon Lieber. “Expectations about future economic conditions have been on a five-month decline, even though hiring expectations nationwide are holding steady, which is a continued good sign in the labor market.”

In Cairo, First Franklin Financial branch manager Lee Hicks doesn’t see employment or the economy improving anytime soon.

In an interview with TTE, he said, “To me, the economy in Grady County is pretty stagnant. At one time, I thought we had some growth going, but we really don’t. I don’t see it getting any better anytime soon.”

He said First Franklin Financial recently hired a temporary employee to replace a full-time employee who retired. This is a strategy being utilized through out the state and country.

“For me to say the economy is improving, I’d have to see some new businesses or manufacturers or someone offering jobs to all those only working on a part-time basis,” Hicks said. “I just don’t see how they do it.”

Within Thumbtack’s survey, comments from many of the businesses across the state are included. Thumbtack withholds the name of the business, but the category and location of the business are included.

A housecleaner in Cairo was quoted in the survey as being far less optimistic, saying, “I am almost out of business. I have no employees. I can’t even afford food or to pay my minimum balance on my credit card. I can’t run the air or heat and I had to cancel cable.”

Northern Georgia doesn’t seem much better. A DJ in Athens was quoted as saying, “The economy sucks! But it’s what we got so we have to face facts and move on. I made three times what I do now a few years ago and charged three times as much. Now I have to work three times harder to make what I use to, which doesn’t happen. But it’s what has to be done to survive.”

The top problems cited in the survey in June were in order of importance: poor sales, uncertain economic conditions, access to credit, competition from big business or overseas, consumer confidence, the cost/quality of labor, taxes, access to health care or health care costs, inflation, interest rates, and complying with government regulations.

Since December 2012, Thumbtack.com has surveyed tens of thousands of small businesses that use its site and mobile app to find customers. These businesses consist largely of independent local service professionals; about 50 percent are sole proprietors, while about 90 percent have fewer than five employees. Each month, this survey asks questions about how small businesses are feeling about the general economic environment and health of their business. Designed with Bloomberg, the survey is housed and integrated into the economic functions of the Bloomberg Professional service.

Thumbtack is a six-year old consumer service based in San Francisco that connects millions of Americans to experienced professionals who are available, interested, and qualified to meet their specific needs. From house remodeling to tennis lessons, Thumbtack helps over 200,000 small businesses every quarter connect with new customers across more than 950 types of service, and helps customers with over 5 million projects a year.